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Topic: Business
Number of pages / Number of words: 2 / 361
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Self-Test Questions

1. The difference between the sales price and the total variable costs is the contribution margin. (D)

2. The breakeven volume in units (perfume sticks) for 2005 is

TR-VC-FC=PBT MR=900000/1800 = 500

TR-VC-FC=0 VC/Q = 495000/1800 = 275

Q*MR - Q(VC/Q) = FC

Q = _____FC_____

MR-VC/Q

Q = 247500/(500 ? 275)

Q=1100 Therefore (B)

3...


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Self-Test Questions

1. The difference between the sales price and the total variable costs is the contribution margin. (D)

2. The breakeven volume in units (perfume sticks) for 2005 is

TR-VC-FC=PBT MR=900000/1800 = 500

TR-VC-FC=0 VC/Q = 495000/1800 = 275

Q*MR - Q(VC/Q) = FC

Q = _____FC_____

MR-VC/Q

Q = 247500/(500 ? 275)

Q=1100 Therefore (B)

3...


Essay fragment

General points of the essay

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